If you're an income investor looking for dividends to boost your income in 2023, then you may want to consider the ASX shares listed below.
Both of these ASX 200 dividend shares have been rated as buys and tipped to provide investors with attractive yields in the coming years.
Here's what you need to know about these shares:
Coles Group Ltd (ASX: COL)
This supermarket giant has been tipped as a dividend share to buy by analysts at Morgans.
The broker currently has an add rating and $19.50 price target on its shares. This compares to the latest Coles share price of $16.83.
Morgans believes that Coles' shares are trading at an attractive level for investors at the current level. Particularly given its defensive characteristics in this uncertain economic environment. The broker commented:
Trading on 20.6x FY23F PE and 4.0% yield, we continue to see COL as offering good value with the company's solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.
As for dividends, Morgans expects:
- FY 2023 fully franked dividends of 64 cents per share (3.8% yield)
- FY 2024 fully franked dividends of 66 cents per share (3.9% yield)
National Australia Bank Ltd (ASX: NAB)
This big four bank has also been named as a buy for income investors. Goldman Sachs is bullish on the banking giant and has a buy rating and $34.81 price target on its shares. This compares to the latest NAB share price of $31.26.
Goldman Sachs likes NAB due to its exposure to commercial lending, which it expects to perform better than home lending in the current environment. The broker also highlights NAB's productivity and cost management as big positives. It explained:
We reiterate our Buy on NAB given: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB's cost management initiatives, which seem further progressed vs. peers.
In respect to dividends, Goldman is forecasting:
- FY 2023 fully franked dividends of $1.66 per share (5.3% yield)
- FY 2024 fully franked dividends of $1.73 per share (5.5% yield)
